ENERTOPIA CORP. The following discussion should be read in conjunction with our audited financial statements and the related notes that appear elsewhere in this annual report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward looking statements. Factors that could cause or contribute to such differences include, but are not limited to; those discussed below and elsewhere in this annual report, particularly in the section Item 1A entitled Risk Factors of this annual report.
Our audited financial statements are stated in
Plan of Operation
During the next twelve month period (beginning
• identify and secure sources of equity and/or debt financing for property payments; • identify and secure sources of equity and/or debt financing for resource acquisitions; • identify and secure sources of equity and/or debt financing for continued testing for Lithium technology • identify and secure sources of equity and/or debt financing for clean technology acquisitions;
We anticipate that we will incur the following operating expenses during this period:
Estimated Funding Required During the 12 Months beginning
Expense Amount ($)
Mineral Costs 16,000
Bench Tests for Lithium Technology 60,000
Resource Acquisitions and or Drilling 300,000
Management Consulting Fees 180,000
Technology Acquisition and Development 160,000
Professional fees 75,000
Rent 12,000
Other general administrative expenses 125,000
Total $928,000 As at the date of this annual report, we do not have sufficient cash on hand to
finance our entire potential and estimated
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Results of Operations for our Years Ended
Our net income (loss) and comprehensive income (loss) for our year ended
Year Ended Year Ended Change Between
August 31, August 31, Year Ended
2022 2021 August 31, 2022
$ $ and Year Ended
August 31, 2021
$
Revenue $ - $ - $ -
Non-operating (Income) Expenses (3,540,642) (225,414) (3,315,228)
Exploration Costs 212,348 7,888 204,460
Consulting Fees 262,880 367,579 (104,699)
Professional Fees 111,027 127,962 (16,935)
Fees and dues 57,332 35,828 21,504
Investor relations 47,917 49,718 (1,801)
Research and Development 808,800 12,566 796,234
Other administrative costs 65,931 13,241 52,690
Net (income) loss (1,974,407) 389,368 (2,363,775)
Our financial statements report no revenue for the years ended
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Liquidity and Financial Condition
Working Capital At At
August 31 August 31
2022 2021
Current assets $ 3,203,141 $ 415,095
Current liabilities 357,855 420,936
Working capital (deficit)
Cash Flows Year Ended
August 31 August 31,
2022 2021
Cash flows used in operating activities
Operating Activities
Net cash used in operating activities was
Investing Activities
Net cash provided in investing activities was
Financing Activities
Net cash provided in financing activities was
Contractual Obligations
As a "smaller reporting company", we are not required to provide tabular disclosure obligations.
Going Concern
Our financial statements have been prepared in accordance with accounting
principles generally accepted in
The Company's financial statements do not include any adjustments to reflect the future effects on the recoverability and classification of assets or the amounts and classification of liabilities that might result from the outcome of this uncertainty.
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At this time, we cannot provide investors with any assurance that we will be able to raise sufficient funding from the sale of our common stock or through a loan from our directors to meet our obligations over the next twelve months. We do not have any arrangements in place for any future debt or equity financing.
Off-Balance Sheet Arrangements
We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders.
Critical Accounting Policies
The discussion and analysis of our financial condition and results of operations
are based upon our financial statements, which have been prepared in accordance
with the accounting principles generally accepted in
Acquisition costs of mineral rights are initially capitalized as incurred while exploration and pre-extraction expenditures are expensed as incurred until such time proven or probable reserves are established for that project. Acquisition costs include cash consideration and the fair market value of shares issued on the acquisition of mineral properties.
Expenditures relating to exploration activities are expensed as incurred and expenditures relating to pre-extraction activities are expensed as incurred until such time proven or probable reserves are established for that project, after which subsequent expenditures relating to development activities for that particular project are capitalized as incurred.
Where proven and probable reserves have been established, the project's capitalized expenditures are depleted over proven and probable reserves using the units-of-production method upon commencement of production. Where proven and probable reserves have not been established, the project's capitalized expenditures are depleted over the estimated extraction life using the straight-line method upon commencement of extraction. The Company has not established proven or probable reserves for any of its projects.
The carrying values of the mineral rights are assessed for impairment by management on a quarterly basis and as required whenever indicators of impairment exist. An impairment loss is recognized if it is determined that the carrying value is not recoverable and exceeds fair value.
Long-Lived Assets Impairment
In accordance with ASC 360, "Accounting for Impairment or Disposal of Long Lived Assets", the carrying value of long lived assets are tested for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. The Company recognizes impairment when the sum of the expected undiscounted future cash flows is less than the carrying amount of the asset. Impairment losses, if any, are measured as the excess of the carrying amount of the asset over its estimated fair value.
Revenue Recognition
The Company recognizes revenue from product sales when persuasive evidence of an arrangement exists, title to product and associated risk of loss has passed to the customer, the price is fixed or determinable, collection from the customer is reasonably assured, the Company has no further performance obligation, and returns can be reasonably estimated.
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Going Concern
We have suffered recurring losses from operations. The continuation of our Company as a going concern is dependent upon our Company attaining and maintaining profitable operations and/or raising additional capital. The financial statements do not include any adjustment relating to the recovery and classification of recorded asset amounts or the amount and classification of liabilities that might be necessary should our Company discontinue operations.
The continuation of our business is dependent upon us raising additional financial support and/or attaining and maintaining profitable levels of internally generated revenue. The issuance of additional equity securities by us could result in a significant dilution in the equity interests of our current stockholders. Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments.
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